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[Federal Register Volume 89, Number 245 (Friday, December 20, 2024)]
[Notices]
[Pages 104285-104286]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-30448]

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DEPARTMENT OF TRANSPORTATION

Federal Transit Administration

[Docket No. FTA-2024-0018]

Notice of Proposed Buy America Waiver for Battery Electric 
Minibuses and Request for Comment

AGENCY: Federal Transit Administration, DOT.

ACTION: Notice of proposed Buy America waiver and request for comment.

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SUMMARY: The Federal Transit Administration (FTA) has received multiple 
requests for a Buy America waiver for battery electric minibuses based 
on the non-availability of Buy America-compliant vehicles. FTA is 
proposing a general non-availability waiver of limited duration for 
vehicles in this class that meet certain criteria. FTA seeks public and 
industry comment on whether FTA should grant the waiver or a modified 
version of the waiver.

DATES: Comments must be received by January 6, 2025. Late-filed 
comments will be considered only to the extent practicable.

ADDRESSES: Please submit all comments electronically to the Federal 
eRulemaking Portal. Go to https://www.regulations.gov and follow the 
instructions for submitting comments.
    Instructions: All submissions must refer to the Federal Transit 
Administration and the docket number of this notice. Note that all 
submissions received, including any personal information provided, will 
be posted without change and will be available to the public on https://www.regulations.gov. You may review DOT's complete Privacy Act 
Statement in the Federal Register published April 11, 2000 (65 FR 
19477), or at https://www.transportation.gov/privacy.

FOR FURTHER INFORMATION CONTACT: Jason Pollock, FTA Attorney-Advisor, 
at (202) 923-6403 or [email protected].

SUPPLEMENTARY INFORMATION: The purpose of this notice is to seek public 
comment on whether FTA should grant a non-availability waiver for the 
procurement of battery electric minibuses.

Background

    Under FTA's Buy America statute, FTA may obligate funds for a 
project to procure rolling stock only if the cost of components and 
subcomponents produced in the United States is more than 70 percent of 
the cost of all components of the rolling stock, and final assembly of 
the rolling stock occurs in the United States. 49 U.S.C. 5323(j)(2)(C). 
A manufacturer of rolling stock must submit to pre-award and post-
delivery audits and independent inspections to verify its compliance 
with Buy America. 49 U.S.C. 5323(m).
    FTA may waive Buy America for an item, among other reasons, if a 
compliant version is not produced in a sufficient and reasonably 
available amount or is not of a satisfactory quality. 49 U.S.C. 
5323(j)(2)(B) (``non-availability waiver''). FTA cannot deny a request 
for a non-availability waiver unless FTA can provide the waiver 
applicant with a written certification that asserts the item is 
produced in the United States in a sufficient and reasonably available 
amount; the item produced in the United States is of a satisfactory 
quality; and includes a list of known manufacturers in the United 
States from which the item can be obtained. 49 U.S.C. 5323(j)(6).
    In 2023, FTA received 3 applications on behalf of 16 transit 
operators for non-availability waivers to purchase the Karsan e-Jest 
battery electric minibus. The 3 applicants are the Heart of Iowa 
Regional Transit Authority on behalf of 10 transit agencies in 
California, Iowa, and Washington; the Greater Attleboro Taunton 
Regional Transit Authority in Massachusetts on behalf of 5 transit 
agencies in Massachusetts; and Alabama A&M University. Combined, the 3 
applications seek a minimum order of

[[Page 104286]]

57 and a potential maximum order of 261 vehicles.
    After reviewing available electric propulsion minibuses, FTA has 
not identified a vehicle that meets all the requesters' specifications 
and FTA's Buy America rolling stock standard. Because of the apparent 
growing interest in vehicles of this type, as evidenced by these 
requests and letters of support from over 150 transit agencies across 
the country, and to foster competition and encourage on-shoring of 
vehicle manufacturing to the United States, FTA is proposing a general 
waiver available to any FTA funding recipient and not constrained to 
any particular manufacturer's offering. The proposed waiver builds on 
FTA's previous efforts through the Clean Bus Manufacturing Roundtable 
to encourage the transition to zero emission vehicles by allowing 
federal participation in the purchase of vehicles that provide public 
transportation services in areas where full-sized zero emissions buses 
are not used due to lower passenger counts. Further, the waiver builds 
on FTA's efforts to encourage domestic manufacturing on-shoring by 
having a limited duration and phase-in period to give manufacturers 
sufficient time to establish domestic sourcing and manufacturing 
capabilities that meet FTA's Buy America rolling stock standard in the 
smaller bus (aka minibus) market.
    Additionally, FTA consulted the National Institute of Standards and 
Technology's Manufacturing Extension Partnership to conduct supplier 
scouting for any battery electric minibus supplier capable of meeting 
FTA's Buy America requirements and the requesters' specifications. 
Supplier scouting identified no such suppliers.

Proposed Waiver

    FTA proposes issuing a general non-availability waiver of FTA's Buy 
America rolling stock requirements for any vehicle with all of the 
following characteristics.
     The vehicle is powered by a battery electric propulsion 
system.
     The vehicle has, or is capable of having, low-floor entry.
     The vehicle is of unibody or monocoque construction (i.e., 
not body-on-chassis).
     The vehicle has a gross vehicle weight rating or gross 
vehicle weight of less than 11,794 kg (26,001 pounds) and is designed 
to transport fewer than 16 seated passengers including the driver.\1\
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    \1\ The number of passengers a vehicle is designed to transport 
is based on the number of designated seats in the vehicle and does 
not include areas suitable, or even designed for, standing 
passengers. See 49 CFR 383.5 and Federal Motor Carrier Safety 
Administration guidance: https://www.fmcsa.dot.gov/registration/commercial-drivers-license/one-definition-cmv-vehicle-designed-transport-16-or-more.
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     The vehicle is not required to report to the National 
Highway Traffic Safety Administration under the American Automobile 
Labelling Act. FTA previously issued a partial Buy America waiver for 
vehicles subject to AALA reporting (Notice of Partial Buy America 
Waiver for Vans and Minivans, 87 FR 64534 (Oct. 25, 2022)), and does 
not intend to alter the terms of that current waiver by this proposed 
action.
    To encourage potential market entrants to build the requisite 
domestic supply chains and establish a final assembly facility in the 
United States, FTA proposes that the waiver would phase out over time. 
For a contract for a vehicle meeting all the above requirements awarded 
more than two years after the effective date of the waiver, this waiver 
would only apply where vehicle final assembly occurs in the United 
States. This waiver would expire three years after it is finalized, or 
upon FTA's publication of a Federal Register notice rescinding the 
waiver after determining that a fully Buy America-compliant vehicle has 
become available, whichever occurs first.

Impacts of the Waiver

    The availability of electric minibuses will contribute to the 
reduction of greenhouse gas emissions and environmental justice.
    Beginning with a 2022 Dear Colleague Letter on Cutaway Rebuild 
Useful Life, FTA has acknowledged and made efforts to address supply 
constraints and delivery delays of body-on-chassis vehicles experienced 
by FTA recipients. One of the requesters for this proposed waiver 
reported waiting times of 24-36 months to receive delivery of body-on-
chassis vehicles. This proposed waiver continues FTA's efforts to 
relieve delays experienced by transit operators due to limited chassis 
availability for transit vehicles by responding to recipients' requests 
for vehicles of unibody or monocoque construction. The requesters' 
specification for a unibody or monocoque construction and zero-emission 
propulsion would make a new vehicle type available for FTA recipients 
to provide zero-emission public transportation services on routes or in 
operations that are most efficiently served by minibuses due to lower 
passenger counts.

Request for Comment

    This notice satisfies FTA's requirement to publish any proposed Buy 
America waiver in the Federal Register and provide the public with a 
reasonable period of time for notice and comment. 49 U.S.C. 5323(j)(3) 
and section 70937(b)(1) of Public Law 117-58.
    FTA seeks public and industry comment from all interested parties. 
In particular, FTA seeks comment regarding whether the waiver should be 
approved, and, if so, whether it should be modified from FTA's proposal 
and why. Relevant information and comments will help FTA fully 
establish the facts surrounding the waiver requests and FTA's proposal 
and inform its ultimate decision on whether to grant the waiver.

Veronica Vanterpool,
Deputy Administrator.
[FR Doc. 2024-30448 Filed 12-19-24; 8:45 am]
BILLING CODE 4910-57-P
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